G7 to release 100 million barrels of oil amid record diesel prices

The Group of Seven (G7) nations announced plans to release 100 million barrels of oil and fuel products, with a focus on diesel, which has reached record high prices. The release will begin with a "substantial" amount of diesel within the next 20 days, followed by the rest over four months. U.S. President Donald Trump emphasized the immediate action, citing political pressure ahead of the November midterm elections and low approval ratings on the economy.

Diesel prices in the U.S. hit a record $6.52 per gallon on September 22, with the national average at $6.37 on Friday. The conflict with Iran has driven up gas prices, but Trump maintains the costs are justified to prevent Iran from obtaining nuclear weapons. The G7's coordinated effort aims to reduce prices and add liquidity to the market, though experts caution about long-term risks.

France, holding the G7 presidency, led the announcement after a videoconference with leaders from Canada, Germany, Italy, Japan, the U.K., and the U.S., plus EU representation. The move follows a March decision by International Energy Agency members to release 426 million barrels to stabilize the oil market. French President Emmanuel Macron stated the decision should lower prices, but analysts warn that draining emergency stocks could leave Europe vulnerable in the future.

Some U.S. Republicans had suggested banning diesel exports to lower domestic prices, but the G7 agreed not to limit energy exports among members. Trump clarified that the U.S. would not impose an export ban, emphasizing cooperation with Europe. Experts like Jim Krane from Rice University's Baker Institute highlight the risks of depleting emergency reserves without clear visibility on future prices or peace agreements.